I can not afford 2 pay my mortgage and i also have a second!?

Question

I got a subprime loan (Which I barely found out with all the mortgage crisis goin on. Thanks CNN). I also have a second mortgage, which is seperate from the first. I refinanced sometime last year and It did not include my property insurance. When I found out, the mortgage Co. (Countrywide) took my remaining escrow balance and put it towards my taxes. Raising my 1st mortgage $400.00. A month. Also in my area the housing prices dropped. My loan balance (1st and 2nd combined) $369.000, My house is now only worth $255.000. Now my work is slow! Ouch! I am currently current with my payment for this month. Now there is now way i will be able to keep up with my current payment. $2300.00 a month. I am planning to let my house go into foreclosure. Now my question(s) is, What is the best way to go about this and what will happen to my second mortgage(will they or can they garnish my wages?). Help!

Answer 1

call the mortgage companies and work with them.  they don't really want your home now.  they may be able to "modify" your note.  especially with all the news they've been making.  I had a friend that was able to modify their note and reduce their rate by .5%.

P.S. a true subprime loan is for people with poor credit.  the adjustable loans that have negitive amortization (the ones that are making the news) are not true subprimes.

so did you get a true subprime? or just a sucky ARM loan?  :)